EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0611481
Customs Act 1901
Background
Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.
Under section 269F of the Act, a person may apply to the CEO for a TCO in respect of goods. If the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which sets out those goods that cannot be subject to a TCO, the CEO must decide whether the application meets the core criteria.
Section 269C of the Act provides that a TCO application meets the core criteria if, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B of the Act provides that ‘goods produced in Australia’ has the meaning given by section 269D, ‘ordinary course of business’ has the meaning given by section 269E and ‘substitutable goods’ in respect of goods the subject of a TCO application, means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use (including a design use) to which the goods the subject of the application can be put.
Subsection 269P(3) of the Act provides that if the CEO is satisfied that a TCO application meets the core criteria, the CEO must make a written order (a TCO) declaring that the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) specified in the order applies.
Omega Steel & Alloy Pty Ltd applied for a TCO in respect of certain hollows on 5 July 2006.
Instrument
TCO No 0611481 was made on 29 September 2006. It declares that those certain hollows are goods to which item 50 of Schedule 4 to the Tariff applies since the CEO was satisfied that no substitutable goods were produced in Australia. The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is 0%.
Consultation
Subsection 269K(1) of the Act provides in part that as soon as practicable after accepting a TCO application as a valid application, the CEO must publish a notice in the Gazette which includes an invitation to any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. The CEO did not receive any submissions in response to this invitation.
Commencement
Subsection 269S(1) relevantly provides that a TCO is to be taken to have come into force on the day on which the application for the TCO was lodged. TCO No. 0611481 is taken to have come into force on 5 July 2006.
The TCO does not affect the rights of a person (other than the Commonwealth) as at the date of registration so as to disadvantage that person or impose liabilities on a person (other than the Commonwealth) in respect of anything done or omitted to be done before the date of registration. The rights of importers will be beneficially affected. Under paragraph 126(1)(r) of the Regulations, importers of such goods will be able to apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. The TCO does not impose any liabilities on any person.
Overview
The Tariff Concession Instrument No. 0611481 was enacted in 2006 as part of the Customs Act 1901, addressing the need for tariff concessions on specific goods to support industry and economic development. This legislation allows the Chief Executive Officer of Customs to issue Tariff Concession Orders (TCOs) that lower the customs duty rate on certain goods, provided they meet specific criteria such as the absence of substitutable goods produced in Australia. The instrument was introduced to benefit importers by reducing their duty costs, which in turn can enhance competitiveness and potentially stimulate economic activity related to these goods. The instrument was enacted by the Parliament of Australia, reflecting a policy objective to support Australian industries by facilitating access to cheaper imported goods when no suitable domestic alternatives exist.
The Tariff Concession Instrument No. 0611481, which came into force on 5 July 2006, specifically applies to certain hollows, reducing their customs duty from 5% to 0%. This was determined after Omega Steel & Alloy Pty Ltd applied for the concession, and no objections were raised during the consultation period. The instrument ensures that it does not adversely affect the rights of any person other than the Commonwealth and does not impose any new liabilities. Instead, it allows importers to apply for duty refunds on goods imported since the TCO's effective date, thereby providing a financial benefit to those importing the specified goods.
Scope and Application
The Customs Act 1901, through Part XVA, facilitates the application of tariff concession orders (TCO) for certain goods, which can result in a lower rate of customs duty. The Act applies to individuals or entities seeking tariff concessions for specific goods, provided these goods are not specified in section 269SJ of the Act and meet the core criteria outlined in sections 269C, 269B, and 269D. The application process involves demonstrating that no substitutable goods are produced in Australia in the ordinary course of business. The geographic reach of the Act is national, with the Commonwealth overseeing the process through the CEO of Customs. Any person can object to a TCO application by lodging a submission, but in the case of TCO No. 0611481, no objections were received. The TCO applies from the date the application was lodged and does not affect any existing rights or impose new liabilities on persons other than the Commonwealth. Importers of the affected goods can apply for a refund of duties paid since the TCO's effective date.
Key Provisions
The primary operative sections of the Tariff Concession Order No. 0611481, which is part of the Customs Act 1901 (the Act), include sections 269C, 269F, 269P, and 269S (subsection 269S(1)). Section 269F allows a person to apply to the Chief Executive Officer of Customs (CEO) for a Tariff Concession Order (TCO). If the CEO is satisfied that the application is valid and meets the core criteria set out in section 269C, a TCO can be made, as stipulated in section 269P(3). Under section 269S(1), a TCO comes into force on the day the application is lodged. This order specifically applies to certain hollows, reducing the customs duty rate from 5% to 0% as specified in item 50 of Schedule 4 to the Customs Tariff Act 1995.
The Act imposes several obligations and requirements on the parties involved. The CEO must determine whether an application for a TCO meets the core criteria, which include the condition that no substitutable goods were produced in Australia in the ordinary course of business on the day the application was lodged. The CEO must also publish a notice in the Gazette inviting submissions from any person who believes the TCO should not be made, as per section 269K(1) of the Act. If no objections are received, the CEO is required to make the TCO. Furthermore, section 269S(1) ensures that a TCO does not affect the rights of any person other than the Commonwealth as of the date of registration and does not impose any liabilities on any person.
Breaches of the obligations or requirements set out in the Act may lead to various civil or criminal consequences. Although the explanatory statement does not detail specific offences or penalties, the general framework of the Customs Act 1901 and related legislation implies that failure to comply with the provisions of a TCO, or any associated misrepresentation, could result in penalties. These penalties might include fines or other sanctions as stipulated under the broader customs laws of Australia. The exact penalties would depend on the specific nature of the breach and would be subject to the existing legal provisions governing customs duties and related administrative processes.